Tag: China

New report: Out-sourcing to be 'defining trend’ in Chinese logistics market

Posted by | Sep 1, 2006 | |

Massive potential exists in the Chinese logistics market for integrated contract logistics companies. This is one of the key findings of a new survey by Transport Intelligence contained in its latest report China Logistics 2006. The survey comprised interviews with over 230 senior professionals representing a cross section of logistics users and providers with operations in China.

According to the survey, 68% of respondents from logistics companies believed that out-sourcing was having a ‘noticeable’ or ‘major’ impact on their businesses. When questioned further 76% of respondents stated that the majority of their out-sourced logistics business was derived from multi-national manufacturers with the remainder being generated by locally based Chinese companies.

Another of the findings of the survey was the extent to which the trend towards out-sourcing could still develop. 48% of respondents indicated that they out-sourced none or just some of their logistics.

Chief Analyst, John Manners-Bell commented: ‘Out-sourcing will be the defining trend behind the growth of the Chinese logistics industry over the coming few years. Our survey has identified that increasing numbers of manufacturers and retailers are looking to out-source to integrated logistics providers due to cost advantages as well as their greater understanding of local markets and regulations. The greatest potential lies with domestic Chinese shippers rather than multinationals which have been amongst the earliest adopters. However competition for this business will be fierce as domestic logistics companies are now increasingly seen as a viable alternative to western and Japanese providers.’

Read More

More FedEx flights to China and rising travel demand likely to keep lid on airline losses, IATA says

Posted by | Sep 1, 2006 | |

FedEx Express has been granted permission by the U.S. Department of Transportation to start additional weekly flights to China, bringing its total to 30, The Associated Press reported from Memphis, Tennessee.

The additions, which will go into effect next March, will allow FedEx Express to operate more all-cargo flights to and from China than any other U.S. airline.

FedEx this year announced a $400 million agreement to bolster its presence throughout Asia by taking full control of a 50 percent joint venture begun in 1999 with Tianjin Datian W. Group.

The joint venture handles international package shipments to and from China, and FedEx’s partner, which goes by the name DTW Group, also operates a domestic delivery network with 89 locations in cities across China.

FedEx said it hoped to complete the acquisition during its 2007 fiscal year, which began in June. The operation will become part of FedEx Express, the company said.

Read More

FedEx gets more flights to China

Posted by | Aug 31, 2006 | |

FedEx Express announced on Wednesday that it was granted permission by the U.S. Department of Transportation to start additional weekly flights to China, bringing its total to 30.

The additions, which will go into effect in March 2007, will allow FedEx Express to operate more all-cargo flights to and from China than any other U.S. airline, the company said in a released statement.

FedEx Express is the cargo airline division of FedEx Corp., operator of the world’s largest express transportation company.

FedEx Corp. earlier this year announced a $400 million agreement to boost its presence throughout Asia by taking full control of a 50-percent joint venture begun in 1999 with the Tianjin Datian W. Group.

The joint venture handles international package shipments to and from China, and FedEx’s partner, which goes by the name DTW Group, also operates a domestic delivery network with 89 locations in cities across China.

Memphis-based FedEx said it hopes to complete the acquisition during its 2007 fiscal year, which began in June. The operation will become part of FedEx Express.

Shares of FedEx rose 42 cents to close at $100.54 on the New York Stock Exchange Wednesday.

Read More

China's ZJS Express upgrading ahead of Hong Kong IPO

Posted by | Aug 30, 2006 | |

ZJS Express Co Ltd, a Beijing-based private courier service, is upgrading its operations and management prior to an initial public offering planned for the second half of 2007 in Hong Kong, said company chairman and president Chen Ping.

ZJS Express plans to raise up to 200 mln hkd via its Hong Kong listing but prior to going public is investing in new technology and doubling its branch network.

After the company completes its restructuring and listing, it will significantly narrow the gap in operational quality with major global players who have entered the Chinese market, Chen told XFN-Asia in an interview.

‘The international express firms currently have weak networks in China and operate on higher costs compared with ZJS. We should take this opportunity to further sharpen our competitive edge,’ he said.

ZJS Express’ volume is expected to increase from more than 35 mln items in 2005 to about 50 mln this year, according to Chen.

Earlier this year, the company said that it plans to invest around five mln yuan to expand its network, increasing the number of outlets to over 800 across the country from more than 400.Among measures to improve operational efficiency, the company will separate its contract logistics operations for corporate customers — 40 pct of its revenue — from services provided for individuals. It will also increase administrative staff at its Beijing headquarters by 52 pct to reinforce management, said Chen.

Chen said the firm will also implement personal digital assistants (PDA) and in coming months buy more equipment including automated picking and sorting systems, logistics vehicles and roll containers.

‘We are not short of money for these two years (2006 and 2007). In addition, we will soon obtain additional funds for future development from the Hong Kong IPO,’ said Chen.

The company had a net profit of around 60 mln yuan last year on total revenue of about 600 mln yuan.

Read More

JV for Cathay and Air China?

Posted by | Aug 28, 2006 | |

Cathay Pacific and Air China are looking to set up a joint venture cargo airline based in Shanghai.

The proposal is part of several areas of planned co-operation between the two, linked to Cathay’s impending takeover deal of Draqonair, which involves an exchange of shareholdings between Air China and Cathay Pacific.

That deal is expected to be completed within the next few weeks after the shareholders of Air China, Cathay Pacific Airways, China National Aviation Company (CNAC) and CITIC Pacific last week approved the proposed shareholding realignment.
A spokeswoman for Cathay Pacific told IPW that all that remained was for several administrative details to be finalised.
Details of the cargo joint venture and other possible areas of co-operation could be decided only once the broader deal was completed, she said.

“That [cargo joint venture] is just at the concept stage. But it will be a joint venture cargo airline.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest